Markets tend to bottom at peak fear, not when there is a clear sign of recovery

Stock markets in general are forward looking by about 3 months. In today's fast paced ever changing economy, it is pretty tough to forecast things much beyond that.

Given that, it makes sense that prices of stocks (and other assets such as bitcoin) would bottom long before the all clear signals are given.

This is especially important when trying to figure out when to buy during this current coronavirus induced recession.

According to Tom Lee and Fundstrat Global Advisors we are actually already through most of the turmoil for asset prices...

Check this out:

(Source:

https://twitter.com/fundstrat/status/1243210077986848770

- fundstrat

)

As you can see, we only have to work our way through a couple more potential headwinds and then the economy will start picking back up again.

He is mostly talking about stocks here, but the same principle applies to bitcoin as well...

Bitcoin was sold off right along with stocks partly due to the fact that wall street money was finally actually in bitcoin.

There was a liquidity event which resulted in everyone running for cash at the same time and everything that wasn't nailed down was sold off.

As things start to pick up again for stocks and the economy in the next couple months, I expect they will for bitcoin and crypto as well.

There is going to be all sorts of stimulus money sloshing around looking for a home, not to mention interest rates that likely stay at zero for the foreseeable future.

When you can't earn a yield on your money, it forces you to put it to work in risky assets.

Crypto, I'm looking at you.

Also, there is that Halving thing now less than 2 months away...

I think we are going to see an awesome second half of this year for stocks and bitcoin.

Hopefully you have been stock-piling cash and are now putting it to work in depressed assets.

If you have been, I think you are going to be very happy by the end of this year.

Stay informed my friends.

-Doc